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LW vs SFM

LW
Lamb Weston Holdings, Inc.
BEARISH
Price
$43.03
Market Cap
$5.94B
Sector
Consumer Defensive
AI Confidence
85%
SFM
Sprouts Farmers Market, Inc.
NEUTRAL
Price
$70.74
Market Cap
$6.69B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
LW
20.2
SFM
13.32
Forward P/E
LW
14.36
SFM
12.07
P/B Ratio
LW
3.27
SFM
4.84
P/S Ratio
LW
0.91
SFM
0.76
EV/EBITDA
LW
8.5
SFM
9.93

Profitability

Gross Margin
LW
20.66%
SFM
39.03%
Operating Margin
LW
10.93%
SFM
5.73%
Profit Margin
LW
4.61%
SFM
5.95%
ROE
LW
17.36%
SFM
38.44%
ROA
LW
6.34%
SFM
11.0%

Growth

Revenue Growth
LW
2.9%
SFM
7.6%
Earnings Growth
LW
-62.2%
SFM
18.4%

Financial Health

Debt/Equity
LW
2.2
SFM
1.39
Current Ratio
LW
1.46
SFM
0.93
Quick Ratio
LW
0.57
SFM
0.41

Dividends

Dividend Yield
LW
3.53%
SFM
--
Payout Ratio
LW
69.95%
SFM
0.0%

AI Verdict

LW BEARISH

Lamb Weston exhibits significant fundamental deterioration, highlighted by a Piotroski F-Score of 4/9 (Stable/Weak) and a severe earnings collapse of -62.20% YoY. The stock is trading at a substantial premium to its Graham Number ($25.10) and Intrinsic Value ($14.91), suggesting a lack of valuation support. While analysts maintain a 'Buy' rating, the technical trend is 0/100 (Bearish) and the company's high Debt/Equity ratio (2.20) combined with a low Quick Ratio (0.57) indicates mounting financial pressure.

Strengths
Strong ROE of 17.36% indicating efficient equity utilization
Consistent history of beating earnings estimates in recent quarters
Operates in the Consumer Defensive sector providing some recessionary hedge
Risks
Severe earnings contraction (-62.20% YoY) indicating operational distress
High leverage with a Debt/Equity ratio of 2.20
Poor liquidity indicated by a Quick Ratio of 0.57
SFM NEUTRAL

SFM presents a stark dichotomy between exceptional fundamental profitability and severe technical decay. The company maintains a stable Piotroski F-Score of 6/9 and an incredible 25-quarter streak of earnings beats, yet the stock has plummeted 58.3% over the last year. While the P/E of 13.32 and PEG of 1.02 suggest a value opportunity relative to a massive 38.44% ROE, the current price is caught between a conservative Graham Number ($41.8) and an optimistic growth-based intrinsic value ($156.64). Bearish insider activity and poor liquidity ratios (Quick Ratio 0.41) currently outweigh the strong operational performance.

Strengths
Exceptional Return on Equity (ROE) of 38.44%
Unmatched earnings track record with beats in nearly every quarter for 6+ years
Attractive valuation metrics (P/E 13.32, PEG 1.02)
Risks
Severe technical breakdown with a 1-year price decline of 58.3%
Weak short-term liquidity indicated by a Quick Ratio of 0.41
Strongly bearish insider sentiment (20 sells, 0 buys)

Compare Another Pair

LW vs SFM: Head-to-Head Comparison

This page compares Lamb Weston Holdings, Inc. (LW) and Sprouts Farmers Market, Inc. (SFM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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